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Export Processing Zone (EPZ) refers to a specially designated industrial area established to promote export-oriented production by providing favourable infrastructure, regulatory conditions, and financial incentives to industries engaged in manufacturing or processing goods mainly for export. The basic objective of an EPZ is to increase exports, earn foreign exchange, attract domestic and foreign investment, create employment opportunities, encourage industrial development, and integrate the domestic economy with international markets. EPZs are generally treated as special areas where export-oriented units receive facilities and concessions that may not be available to ordinary industries. In India, the concept of Export Processing Zones was introduced to encourage export production. The first EPZ in Asia was established at Kandla in Gujarat in 1965. Subsequently, other EPZs were established at places such as Santacruz in Maharashtra, Noida in Uttar Pradesh, Falta in West Bengal, Cochin in Kerala, Madras (now Chennai) in Tamil Nadu, and Visakhapatnam in Andhra Pradesh. The EPZ approach later developed into the Special Economic Zone (SEZ) framework, which provides a broader institutional structure for export-oriented industrial activity. Units located in EPZs receive several benefits and facilities that reduce the cost and difficulties associated with export production. One of the most important benefits is the availability of developed industrial infrastructure. EPZs generally provide industrial plots, factory premises, roads, electricity, water supply, communication facilities, warehousing, transport facilities, and other common services. The availability of such infrastructure enables enterprises to begin production and export operations more efficiently. Another important advantage is the availability of customs-related facilities. Export-oriented units in EPZs are provided simplified customs procedures for importing machinery, equipment, raw materials, components, and other inputs required for production. Since export industries often depend on imported inputs, easier customs clearance helps reduce delays _____ ______ ______ ____ __________ ______ _______ ___ ______ __________ _________ _________.
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